7220 Deductions for Food Assistance

7221 Earned Income Deduction - This applies to compensation received as an employee, self-employment income, and training allowances. Earnings exempted in 6400 shall not be included in gross earned income for purposes of computing the earned income deduction. The earned income deduction is 20% of gross earned income.

7222 Standard Deduction - A standard deduction of a fixed amount per household per month. The standard deduction will change each year depending upon economic factors. The allowable standard deduction is determined by household size.

The current standard deduction amounts are:

Household sizes from 1 - 4 = $193
Household size of 5 = $225
Household sizes of 6 and more = $258

NOTE: When determining the household size for purposes of the standard deduction, excluded and disqualified household members are NOT included.

7223 Excess Medical Deduction - That portion of medical expenses in excess of $35 per month, excluding special diets, incurred by any household member who is elderly or disabled as defined in the Appendix. See Appendix item P-1 for allowable medical costs. Billed expenses for which there may be a third party reimbursement are deductible in the month in which the third party reimbursement is received or can otherwise be verified, rather than when the bill is first received. Also see 7227.5.

Effective January 1, 2011, a Standard Medical Deduction of $175 shall be used for all elderly and disabled food assistance persons who have anticipated allowable medical expense(s) greater than $35 and equal to or less than $175 per month. If the household has allowable medical expenses in excess of $175 per month, then the person may choose to use actual medical expenses or the standard medical deduction. See 1322(2) for verification requirements. The standard shall stay in place throughout the review period.

If the household reports allowable ongoing medical expenses in excess of $175 they may choose to use actual expenses, otherwise the standard deduction remains on the budget throughout the review period. If the household has chosen to continue the standard medical deduction at the time of the next review, they only need to declare they have anticipated ongoing medical expenses in excess of $35 per month for the Standard Medical Deduction to be allowed for the new review period. If they do not claim ongoing medical expenses in excess of $35 at review, the Standard Medical Deduction shall be removed.

NOTE: If the household does not report medical expenses at the time of application, (no Standard Medical Deduction is allowed), but reports medical expenses at the time of review that are greater than $35 and equal to or less than $175 per month, the verification requirements that apply at application would apply at recertification in order to allow the Standard Medical Deduction. If the household reports expenses in excess of $175 at review, verification would be required for those expenses to be allowed.

See 7227.5 for information on allowable medical expenses and number (7) of that section for treatment of one-time medical expenses when the household is using the standard.